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2015 (1) TMI 1107 - AT - Income TaxDisallowance u/s 14A r.w. Rule 8D of the IT Rules - Held that:- Keeping in view the ratio laid down by the Hon’ble Jurisdictional High Court in the case of CIT Vs Holcim India (P.) Ltd. [2014 (9) TMI 434 - DELHI HIGH COURT] are of the considered view that no disallowance u/s 14A of the Act can be made if there is no income earned. - Decided in favour of assessee. Addition to income - disallowance of 20% out of various expenses - Held that:- AO completed the assessment on 21.12.2010 whereas he has issued the show cause notice vide order dated 16.12.2010 asking the assesee to file its reply by 21.12.2010. We are of the view that the AO has not given sufficient time to the assessee to file its complete reply alongwith supporting documents for substantiating its claim. No doubt that assessee has filed its reply on the date of assessment i.e. 21.12.2010, but in our opinion sufficient time has not been granted by the AO to the assessee for substantiating its claim, which is contrary to the principles of natural justice. Similarly, the Ld. CIT(A) has also taken in a routine manner the additional evidence filed by the assessee. No doubt that after taking the Remand Report from the AO, Ld. CIT(A) has decided the issue in dispute against the assessee. Thus the issue involved require thorough examination at the level of the AO, after providing adequate opportunity of hearing to the assessee - Decided in favour of assessee for statistical purposes.
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